The Proposition 64 Ballot is on November 8, 2016. Stripped of the hyperbole, voters have a choice of saying ‘Yes’ or ‘No’ to the following proposal.
– Legalize marijuana under state law for use by adults 21 or older
– Impose state taxes on sales and cultivation
– Provide for industry licensing and standards for marijuana products
– Allow local regulation and taxation
– Receive additional tax revenues, mostly for specific purposes
– Reduce costs of criminal justice
That’s a broad palette to give to politicians. MMJ Info decided to dust off the crystal ball and figure out what they will do if, and we think likely voters approve.
Benefits for Consumers from Legalized Marijuana
Adults will be free to grow, purchase, transport, and possess a small but significant amount of marijuana for personal use without requiring a medical script. There are however still some limitations.
California citizens may not sell the marijuana thus obtained without a trading license. They may smoke it in their homes, or at a business with on-site-consumption permission. They may not enjoy it in any form in a public space, or anywhere there is a prohibition on smoking tobacco.
Who Pays the State Taxation Bill?
With Proposition 64, the consumer is going to shoulder the burden of $2.75 per ounce of leaves, and $9.25 per ounce of marijuana flowers. They are going to pay 15% excise tax on top of sales tax. In a worst-case scenario, 30% of their money could go up in the wrong kind of smoke.
The Cost of State Oversight
Whether it is a paid-for-service, or an administrative overhead, the consumer will also indirectly pay for pesticide regulation, water safety, environmental assessment, and licensing of producers, growers and distributors. Law enforcement savings will mostly go to the federal vacuum cleaner.
The Benefits of Having Quality Control
We see distinct advantages for marijuana consumers. A cap on the psychoactive chemical THC will be good for personal safety. They will also be able to refine their tastes and settle for the blend that works best for them.
So yes, our crystal ball confirms that there will be changes to adapt. Marijuana is going to become more expensive, but there will finally be consumer protection and shielding from the law. As we predicted previously, it will be like liberation from alcohol prohibition. The product will go upmarket and make the lucky few rich.